Can You Be a Part-Time Real Estate Agent?
A real estate career often appeals to individuals looking for a second career or the ability to make supplemental income in a flexible and enjoyable way. As a real estate agent, you have the ability to set your own path, goals, and level of commitment. You may be wondering: Can you be a part-time real estate agent? The short answer: Yes!
There are many individuals interested in growing their real estate career who might choose to begin as a part-time real estate agent to build their network. Others might choose to sell real estate part-time as a way to make extra income in their free time while still maintaining their primary career. Becoming a real estate agent can be a very rewarding experience. You are providing a valuable service and helping people own their first home, purchase vacation properties, or transition to a new stage of life. This process is exciting as you get to meet new clients, show properties that match up with their desires, and help them find their perfect fit.
A part-time real estate career is quite common and offers a great opportunity to build a successful business on your schedule. In order to become a real estate agent, there are some steps you must take to get started on the right path. If you’re interested in selling real estate part-time, this guide will take you through the ins and outs of becoming a part-time real estate agent.
How to Become a Successful Part-Time Real Estate Agent
The requirements to become a part-time real estate agent are the same requirements asked of full-time real estate agents. While these requirements vary by state, most follow a similar process. The steps below will help you realize your dream of selling real estate part-time:
Research Your State's Real Estate Licensing Requirements
An important first step in the process of becoming a part-time real estate agent is to take the time to research your state’s requirements for real estate licensure. Doing so will ensure you’re taking the right steps to prepare for licensing. It is important to note that, when applying for a real estate license, each license is state-specific. For example, if you are a licensed real estate agent in New York, you will not be able to automatically sell property in Florida without applying for licensing there.
Educational Requirements to Become a Real Estate Agent
Although you are not required to hold a degree in order to earn a real estate agent license in all states, you’ll likely still need to complete a Pre-Licensing course before taking the exam. Each state has a specified number of hours you must complete successfully in order to sit for a real estate license exam. Luckily, there are real estate schools available to teach you everything you need to know to pass your licensing exam and start selling real estate part-time.
Once you have successfully completed your Pre-Licensing course, your focus will shift to sitting for your state's licensing exam. Consider taking a state-specific Exam Prep course to guide you through the studying process and give you the best chance of successfully passing the exam on your first try.
Schedule Your Real Estate License Examination
Consider your Exam Prep timeline and schedule your examination as close to the end of your prep course as possible. That way, you can take your test while the knowledge is still fresh.
Begin Your Search for a Broker to Apply for Your State's Real Estate Agent License
In many states, your real estate license enables you to engage in the buying and selling of homes only on behalf of a real estate broker; in other words, you can’t buy or sell properties without working for a broker in some states. In order to complete the application for your real estate agent license, you may be required to get sponsored by an eligible broker in your state. Take your time to research the best broker options in your area and compare the benefits of working with each one to find the right fit for you.
Once you’ve passed your real estate agent licensing exam, you can begin the sponsorship process and proceed with your state's application for a real estate agent license.
Part-Time Real Estate Agent Salary
Real estate agent's earnings are commission-based. A part-time real estate agent’s salary is closely intertwined with the time and commitment you are dedicating to your position. The more hours you put in, the higher the likelihood of bigger earnings and more frequent sales. Initially, you should also account for the upfront costs associated with obtaining your real estate license. While it is possible to keep these initial costs low, it is all dependent on your overall approach to building your brand, as there are costs associated with advertising, transportation, and networking.
How Is Your Real Estate Commission Determined?
As a part-time real estate agent, your commission on the sale of a home is dependent on a number of factors. The primary source for determining your commission rate will depend on the agreement established between yourself and your broker.
When a real estate transaction is complete, the percentage of commission allotted for the brokerage under the listing contract will be transferred to the broker and any other parties indicated in the document. At that time, the contract’s commission ratio will be distributed to you.
Keep in mind that a commission on a real estate sale can be divided amongst a number of parties depending on who is involved, such as the buyer's broker and agent and the seller's broker and agent.
Did You Know?
The U.S. Census Bureau reported that the average American moves just under 12 times in their life. Talk about the opportunity for repeat business!
Pros & Cons of Being a Part-Time Real Estate Agent
Becoming a part-time real estate agent is a viable option for many individuals interested in a real estate career. However, it is important to set realistic expectations and understand the possible limitations associated with a part-time real estate position.
Pros of Selling Real Estate Part-Time
Flexibility to work on your terms and within your set schedule.
The satisfaction of helping clients find their ideal properties.
Ability to learn the industry at your pace while maintaining other income sources.
Cons of Selling Real Estate Part-Time
Difficulty connecting with more seasoned professionals and attending crucial networking events when juggling competing responsibilities.
Balancing difficult clients that may be demanding of your time and limited resources as a part-time agent.
Possibility of missed opportunities due to limited hours and availability.